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Highlights
- Crypto market liquidations hit $240 million ahead of the Fed rate cut during the September 17 FOMC meeting.
- Ted Pillows highlighted that September’s triple witching has historically pressured U.S. equities and crypto.
- He warned Bitcoin may fall 5–8%, while altcoins risk sharper 15–20% declines.
- Despite the altcoin season index rising to 84, analysts expect Bitcoin dominance to rebound toward 60%.
Following a successful upside last week, the crypto market is seeing some selling pressure ahead of the Fed rate cut this week. XRP, SOL, and DOGE lead the altcoin correction today as experts predict the possibility of another 15-20% drop ahead. The overall liquidations across the broader market have surged to $240 million, of which $176 million is in long liquidations.
Crypto Market Drops Heading Into Fed Rate Cut This Week
As the much-awaited Fed rate cuts are here this week, the crypto market is facing sell-the-news momentum. As the Bitcoin price upside faces resistance at $116,000, analysts predict the signs of topping out in the near term.
Crypto analyst Ted Pillows has cautioned that September’s triple witching expiration could bring short-term weakness to U.S. equities. He further added that this could potentially have a spillover effect on the crypto market, including top altcoins like XRP, DOGE, SOL, etc.
Pillows noted that since 2000, the S&P 500 has averaged a -1.17% return in the week following triple witching, a quarterly event when stock options, index options, and futures contracts expire simultaneously. If history repeats, the analyst warned that Bitcoin could fall 5%–8%, while altcoins may face sharper declines of 15%–20%.
Following last week’s rally, the altcoin season index has been showing strength, moving all the way to 84. Moreover, the Fed rate cut coming this week could further increase investors’ risk appetite, which could lead to a full-blown altcoin season. Moving into Q4, top financial institutions like Goldman Sachs are expecting three Fed rate cuts before the year-end. This could be particularly beneficial for altcoins.
Full-Blown Altcoin Season Isn’t Coming Soon
Amid the drop in the bitcoin dominance in recent weeks, the optimism surrounding a full-blown altcoin season remains high. However, in the near term, analysts predict a shift in structure amid the ongoing macro development and Fed rate cuts ahead.
As per the technical chart patterns, Bitcoin dominance (BTC.D) is showing signs of a bounce back from the key support level. A sweep of 57.5% in Bitcoin dominance could push the metric toward 60%, giving BTC a final leg of momentum against altcoins in the current cycle.
Crypto market analysts believe that the end of Q4 2025 and Q1 2026 could mark the beginning of a parabolic altcoin season, with altcoins significantly outperforming Bitcoin. While the rest of the altcoin sector faces correction today, the BTC price is holding firm at $116,000 levels, showing greater relative strength.
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